Binance Markets Limited (BML), the UK subsidiary of crypto exchange Binance, has officially withdrawn its registration with the country’s Financial Conduct Authority (FCA). The decision indicates that the company can no longer offer regulated activities and products in the UK, as per the FCA. The registration cancellation, dated June 7 and completed on May 30, 2023, was requested by BML and is now reflected on the FCA Register.
This development follows BML’s launch in June 2020 when Binance acquired and rebranded a company called EddieUK, and Binance’s CEO Changpeng ‘CZ’ Zhao was given significant control over the entity. Initially, BML aimed to help establish binance.uk in order to serve UK consumers, similar to the US-based Binance US.
Looming close in the timeline is June 2021’s consumer warning from the FCA, specifically singled out Binance’s UK subsidiary, despite its dormant status. In response, a spokesperson for the exchange clarified that BML held various FCA permissions for activities never executed or offered in the UK. Believing it unlikely to require these permissions in the future, BML decided it apt to cancel them, adhering to the FCA’s recommendations to keep these matters updated.
The exchange further explains that this decision bears “no impact” on its global trading platform, Binance.com, which does not possess or operate any crypto services in the UK. Instead, the platform is only accessible to UK consumers on a reverse solicitation basis.
However, Binance is no stranger to regulatory challenges. The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against the exchange, accusing it of violating U.S. securities laws. More than that, French authorities are now investigating Binance for alleged offenses, including aggravated money laundering.
Moreover, the crypto exchange has recently announced its plans to withdraw from Cyprus, opting to focus its efforts on fewer regulated entities in the European Union. Adding to this complex regulatory landscape is the termination of Binance’s operations in the Netherlands due to its inability to obtain a virtual asset service provider (VASP) license.
In conclusion, the story of Binance’s UK subsidiary, BML, showcases the intricate relationship between crypto exchanges and regulatory authorities. As more companies enter the crypto space, it is essential to weigh the potential advantages of increased accessibility against the potential risks and challenges posed by an ever-evolving regulatory environment.
Source: Decrypt
